Personal income of Americans declined in June

31.07.2020 14:06
Personal income in the US is expected to decline in June, while personal spending will increase.
Spending in the second quarter was just below the 2019 average, and retail sales were twice as high as last year.
Income declined in June as people returned to work, reflecting average hourly earnings.
The latest core consumption figure for the second quarter is slated to show a significant increase in June with spending for the period just below the average for last year.

Personal spending is forecast to increase by 5.5% after may's 8.2% increase. The consumption indicator fell by 12.6% in April and 6.9% in March.
Personal income is forecast to fall 0.5% last month after falling 4.2% in may and rising 10.8% in April.
The consumer price index for personal consumption is expected to remain unchanged in June, and increase by 0.5% year-on-year.  The base monthly index will be 0.2% higher, while the annual index will be 1.0% higher.
Personal consumption expenditure (PCE) is a broader group than retail sales that includes services and is tracked by the household buyer rather than the seller.
Personal income data was distorted by layoffs and then partial returns of low-paid workers during the pandemic layoffs.
Since hourly workers were laid off in large numbers in April, it seemed that income increased by 10.8%, as it recorded a change in the more paid group of workers.  In may, the opposite happened, as the return of low-paid laid-off workers reduced the overall average.
These figures from the Bureau of economic analysis, a division of the Department of Commerce, like the above personal spending data, track a broader set of criteria than the average hourly earnings of the Bureau of labor statistics, including pensions, unemployment benefits, interest, dividends, and all sorts of transfers of payments.
Prices recorded a deep decline in demand in March and April, as the economic shutdown occurred in March and April.
Overall, prices fell 0.2% in March and 0.5% in April, then rose 0.1% in may and are expected to remain flat in June.  The annual figures remained the same: from 1.8% in February to 1.3% in March, 0.6% in April and 0.5% in may, where they are forecast to remain.
The core PCE price index, known as the fed's inflation policy orientation, fell 0.1% in March, 0.4% in April, and rose 0.1% in may.  Annual figures were 1.7% in March and 1% in April and may.

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